Corporate Governance Policies

Corporate Governance Policies
CDF has long recognized the importance of corporate governance practices that help ensure effective oversight and strong accountability, and has adopted comprehensive corporate governance policies and processes that are designed to safeguard the interests of our stakeholders. CDF’s internal regulation clearly outlines the organization structure and functions of each department and CDF has established an independent department to handle internal auditing.

CDF’s commitment to corporate governance can be summarized as follows:

To safeguard stakeholders' interests
1.CDF aims to offer timely and relevant information on financials, business, shareholding and corporate governance via updates/disclosures on the Market Observation Post System (MOPS) and CDF’s website.
2.To protect shareholders’ interests, senior management must obtain the approval of the Board before entering into any material transactions pursuant to Procedures of the Acquisition or Disposal of Assets and other regulations approved by the general shareholders meeting.
3.The Board has delegated to management members the power and responsibility to conduct day-to-day management operations, and our management team and all other employees are expected to act ethically at all times to protect CDF, as well as its clients and stakeholders.

To strengthen the supervisory function of the Board of Directors
1.The Board currently is comprised of a total of 9 directors (of which 3 are independent), the Audit Committee and the Remuneration Committee, with members drawn from a wide cross-section of industry veterans.
2.The Board meets at least once a month, and in case of emergency, an extraordinary meeting shall be held if needed. All directors are entitled to receive the agenda and sufficient information prior to the meeting.
3. All directors abide by the conflict of interest policy and shall avoid situations in which he/she has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of CDF.

To fulfill expectations of stakeholders as well as shareholders
1.We respect the needs and interests of all stakeholders, including employees, customers and business partners. CDF makes timely responses to their needs and concerns, and our website also includes a Stakeholder Engagement section for further reference.
2.CDF is committed to community projects and social welfare initiatives, such as: the “Perfect Nutrition” program, the “Campus Lunch” contest, and “Food-loving Babies”. For further details regarding CDF’s engagement in the area of corporate social responsibility, please refer to the Corporate Citizenship section on our website as well as the Corporate Social Responsibility Report.

To improve transparency and disclosure
1. CDF has set up bilingual website to disclose information about CDF’s financials, business and corporate governance status.
2.CDF has appointed appropriate personnel to handle information disclosure and updates on the website, and has established a spokesperson system in accordance with regulations, with a spokesperson and deputy spokesman tasked to centralize the announcement of corporate information. In accordance with the Taiwan Stock Exchange Corporation’s rules and regulations, CDF discloses material information and financial data on the Market Observation Post System (MOPS). CDF holds semi-annual investor conferences and posts related bilingual information on its website.
3.CDF ranked in the top 5% in the recent Corporate Governance Evaluation of Public-Listed Companies conducted by the Taiwan Stock Exchange (TWSE).